BizCalc Australia
Transparent Formula

Gross Margin Calculator

Calculate gross profit and gross margin from sales revenue and cost of goods sold.

Enter your revenue and direct costs to see gross profit, gross margin percentage and cost percentage, with transparent formulae shown.

Direct Cost & Revenue Inputs

Enter GST-exclusive figures where possible

Total invoiced amount
$ AUD
Direct expenses
$ AUD

GST collected is not business revenue — it is remitted with your BAS. For a true commercial margin, enter GST-exclusive revenue and costs. Use the GST calculator to strip GST from GST-inclusive figures first.

Quick Industry Presets

Presets set your costs to the level that produces the selected margin on your current revenue.

Gross MarginHealthy Commercial Margin
35.0%

Gross profit expressed as a proportion of total turnover

Revenue
$10,000.00
Direct costs
$6,500.00
Gross profit
$3,500.00
Cost percentage
65.0%
Profit per dollar
$0.35 AUD

For every $100 of revenue, $35.00 remains after the direct costs entered above to cover fixed overheads, taxes, and net business earnings.

Visual Revenue Anatomy (Per $100 Sales)

Proportional split
Costs 65.0%
Profit 35.0%
Total turnover: $100.00Direct costs: $65.00Retained gross profit: $35.00

What do you want to do next?

Need to raise your price to protect your margin?

Work backwards from target profitability to calculate required selling prices across wholesale and retail tariffs.

Selling Price Calculator

Calculate margin from individual unit cost and price?

Isolate single SKU performance, landed import tariffs, and specific packaging overheads per unit sold.

Margin Calculator

Need to apply a percentage markup on cost instead?

Add standard percentage margins directly on top of wholesale purchasing costs for fast price quotes.

Markup Calculator
Strategic target planning

What would you need to change to reach a 40% margin?

Current: $10,000.00 revenue · $6,500.00 costs · 35.0% margin
Pathway A: Price & Revenue Adjustment

Keep direct costs at $6,500.00 and increase revenue.

Required sales revenue$10,833.33+$833.33 change
Open Selling Price Calculator
Pathway B: Cost Reduction & Procurement

Keep sales revenue at $10,000.00 and reduce direct costs.

Maximum allowable direct costs$6,000.00$-500.00 change

Negotiate supplier pricing, freight efficiency, or production costs.

How the Calculation Works

Standard commercial accounting arithmetic — transparent formulae shown.

Step 1: Gross Profit
Profit = Revenue − Costs

Deduct total cost of goods sold and ancillary direct order execution fees from top-line turnover.

Step 2: Percentage Conversion
Margin = (Profit ÷ Revenue) × 100

Express the residual dollar surplus as a direct decimal percentage of the total sales revenue generated.

Worked Numeric Example
($10,000.00 − $6,500.00) ÷ $10,000.00 × 100 = 35.0%

Based on your current inputs, generating $3,500.00 retained margin on $10,000.00 gross sales.

Gross Margin vs Profit Margin (Net Margin)

Understand what each profitability measure includes.

Gross Margin

Sales revenue minus direct production or service costs. It shows product and delivery efficiency before operating overheads.

Net Profit Margin

Revenue minus all business expenses, including rent, administration, finance costs and other operating overheads.

Compare on Profit Margin Calculator

Related Australian Business Calculators

Integrated tools built for BAS agents, retail operators, and commercial contractors.

Margin Calculator

Calculate commercial margin from unit wholesale cost and final customer selling price.

Gross Profit Calculator

Calculate total gross dollar profit across multiple product sales and delivery contracts.

Markup Calculator

Apply a percentage markup directly on cost to derive a calculated selling price.

Discount Calculator

See how promotional discounts affect net price and verify remaining profit viability.

GST Calculator

Add, remove or identify the 10% Australian GST component for invoices and BAS.

Selling Price Calculator

Work out the price required to achieve a target margin on goods or client services.

Frequently Asked Questions

Common questions about gross margin for Australian businesses.

Gross margin is the percentage of sales revenue remaining after paying the direct costs involved in producing goods or delivering services. It measures how efficiently a business converts its direct inputs into profit before overhead expenses.

Statutory Notice: BizCalc Australia provides calculation tools for general informational purposes. Results depend on the figures you enter and do not constitute accounting, tax or financial advice. Consult a registered BAS agent, CPA or tax professional for formal advice.